Minister Alake’s Fantasy Economics: How Unrealistic Targets Are Destroying Nigeria’s Mining Sector

By Billiyamniu Suraj

Biliyasuraj247@yahoo.com

Nigeria’s Minister of Solid Minerals Development, Dr. Dele Alake, has made bold promises about transforming the country’s mining sector. His stated aspiration for mining to contribute “around 50 percent of GDP” has captured headlines and generated excitement about Nigeria’s mineral potential. However, this target reveals not ambition but a fundamental disconnect from the realities of international mining economics , a disconnect that is actively harming the sector it purports to develop.

To understand how divorced from reality this target is, consider the world’s premier mining nations. Australia, with over a century of mining development, world-class geological data, transparent regulation, sophisticated capital markets, and billions in ready investment capital, sees its mining sector contribute approximately 12-14% to GDP. Canada’s mining sector, similarly mature and well-developed, contributed about 4-6% to national GDP in recent years.

Yet Nigeria, where the mining sector currently contributes less than one percent to GDP and actually declined by 21% in 2024 compared to 2023, is supposedly targeting 50%. This is not merely optimistic, it suggests either a catastrophic misunderstanding of the mining industry or a cynical manipulation of public expectations to justify policies that serve other agendas.

The Seven-Point Agenda: Reforms That Ignore Root Causes

Minister Alake has unveiled a seven-point agenda to reposition the sector: establishing the Nigeria Solid Minerals Company, creating Mines Marshalls to combat illegal mining, acquiring comprehensive geological data, formalizing artisanal and small-scale mining, promoting value addition and local processing, attracting large-scale investment, and strengthening stakeholder engagement.

On paper, these initiatives sound reasonable. In practice, they fail to address or even acknowledge the fundamental problems destroying Nigeria’s mining sector: systematic corruption at the Mining Cadastre Office (MCO), lack of security of title, a punishing fee structure that bankrupts local miners, and the systematic sabotage of a $60 million World Bank-funded cadastre system specifically designed to prevent these failures.

The Ministry’s stated reasons for lack of investment, “insufficient geological data, weak infrastructure, informal operations, illegal mining, and a significant financing gap”, conveniently omit the elephant in the room: institutional corruption and regulatory dysfunction that makes Nigeria’s mining sector toxic to legitimate international investors. This selective diagnosis suggests the Ministry either does not understand how the global mining sector works or is deliberately obscuring the real obstacles to development.

When “Reforms” Become Instruments of Corruption

Perhaps most troubling is evidence that even newly created reform initiatives are being corrupted from inception. The Mines Marshalls, established ostensibly to combat illegal mining, have reportedly been deployed as private security for parties in the Minister’s favor. Rather than enforcing the law impartially, this taxpayer-funded force allegedly serves to protect connected operators while harassing legitimate miners who lack political patronage.

If accurate, this transforms a law enforcement initiative into an instrument of favoritism and intimidation, further entrenching the very corruption it was supposedly created to combat. When even new institutions are corrupted before they can function properly, it reveals the depth of the systemic rot and raises serious questions about whether reform is possible under current leadership.

The Revenue Paradox: Punishing Miners to Generate Numbers

In the first quarter of 2025 alone, the MCO and Mines Inspectorate recorded N6.9 billion and N7 billion in revenue respectively, figures the Minister and MCO Director-General hailed as an “outstanding success.” However, this purported success masks a devastating reality for Nigerian miners and exposes the Ministry’s fundamental misunderstanding of how mining investment works.

The dramatic fee increases that generated these revenue figures have created an unprecedented crisis for local mining operators. The national president of the Miners Association of Nigeria (MAN) highlighted that access to finance remains “the number one challenge facing artisanal and small-scale miners,” describing mining as “a capital-intensive and high-risk sector” where “without targeted funding, our local operators cannot survive, let alone thrive.”

Local miners have made clear that after paying the inflated MCO fees, they lack sufficient capital to actually conduct mining operations, forcing them to seek external financing for what should be operational capital. This is particularly devastating in Nigeria’s context, where the mining sector has not yet developed the mature capital markets seen in countries like Canada and Australia, where exploration is financed through regulated stock exchange listings that distribute risk among investors.

In mature mining economies, companies raise capital through public markets, allowing investors to bear exploration risk in exchange for potential returns. Nigeria’s mining sector has not reached this stage of development. Individual miners must find private capital to explore, make discoveries, and prove such discoveries are the basis for commercial mining operations. The exorbitant fees introduced by the Ministry make this already difficult task nearly impossible.

The Mass Revocation Crisis: Creating Illegality by Design

The result has been an unprecedented wave of title revocations as miners default on inflated fees they simply cannot afford. This mass revocation is not merely an administrative matter, it is forcing Nigerian miners to operate illegally, creating the very conditions for insecurity that the government claims to want to prevent.

When legitimate operators are pushed into illegality by impossible regulatory demands, they join the shadow economy alongside criminal networks. The distinction between forced illegality and criminal enterprise becomes blurred, creating lawless zones where neither regulatory authority nor community accountability operates. The natural resources that belong to all Nigerians are thus exploited and sold by illegal operators who pay no royalties to the federal government, enter into no community development agreements, and provide no fair compensation to landowners.

The Ministry has promoted a “use it or lose it” policy regarding mining titles, presenting it as a reform that will open opportunities for new operators. However, this ignores fundamental mining economics. In mature mining economies like Canada and Australia, the average period from discovery to mine development is eighteen years. This timeline reflects the realities of exploration, feasibility studies, environmental assessments, permitting, financing arrangements, and infrastructure development.

An environment where revocation has become routine due to unpayable fees is not an incentive for development, it is a powerful deterrent to international mining investment. Legitimate mining companies operate on decade-long timelines with hundreds of millions of dollars at stake. They cannot invest such capital in jurisdictions where titles can be arbitrarily revoked or where regulatory demands are economically impossible to meet.

The Stark Reality: A Sector in Decline, Not Growth

The statistics tell a story that contradicts the Ministry’s triumphalist rhetoric. According to the National Bureau of Statistics, Nigeria’s solid minerals, mining, and quarrying sector’s contribution to GDP declined by 21 percent in 2024 compared to 2023, this despite “various reforms and policy changes aimed at revitalising the sector under the current administration.”

In 2021, the mining industry contributed a mere 0.33% of Nigeria’s GDP. The sector generated N193.59 billion in revenue that year, representing less than 1% of national GDP, only 2.62% of total revenue, and a negligible 0.24% of total exports. Over fifteen years, the sector has generated only N814.6 billion in revenue total, indicating it is far from being a major revenue earner.

These figures expose the hollowness of the Ministry’s claims of success. When your sector is shrinking rather than growing, when your contribution to GDP is declining rather than increasing, and when international investors are fleeing rather than arriving, declaring high fee collection as an “outstanding success” reveals either profound delusion or deliberate deception.

International Investor Confidence: From Bad to Worse

International investor confidence in Nigeria’s mining sector is at an all-time low, despite ministerial rhetoric to the contrary. Minister Alake has claimed that UK, US, Saudi Arabia, and UAE officials have expressed interest in Nigeria’s lithium and other critical minerals. However, industry insiders describe this as an “improbable interpretation of the real situation.”

The reality is starkly different: the US, Canada, and Australia, all major international mining economies with mature industries, have effectively put investment in Nigeria’s mining sector on hold. The UK, France, and Germany, which require stable long-term supplies of critical minerals for their green energy transitions, are engaged only in tentative discussions with no concrete progress to date.

Nigeria’s absence from the 2025 Africa Down Under conference in Australia is particularly telling. The conference serves as a major platform for African mining investment promotion and would typically feature significant Nigerian participation given the country’s mineral wealth and need for foreign investment. Speculation has linked this absence to concerns about international arbitration proceedings, including those involving Jupiter Critical Minerals Project over a billion-dollar lithium project.

The lack of security of title, the fundamental requirement for mining investment, undermines any possibility of attracting investment from major international mining companies. When legitimate investors face license cancellations, overlapping claims, or other bureaucratic obstacles, they may seek recourse through international arbitration. Nigeria could face multiple such cases, potentially costing the nation far more than any revenue generated by inflated fees.

The Environmental and Social Costs

Beyond financial dysfunction, the Ministry’s policies have enabled environmental destruction on a massive scale. Chinese mining companies operating in Nigeria have been accused of deploying outdated and environmentally destructive technologies that would be banned in their home country. The absence of rigorous environmental oversight has resulted in ecosystem damage, soil degradation, and health problems for communities near mining operations.

Local residents in mining-affected areas report contaminated water sources, destroyed agricultural lands, and respiratory illnesses linked to mining dust and chemical runoff. The failure to enforce environmental standards or revoke licenses from violating operators suggests either incompetence or deliberate complicity in the destruction.

This environmental crisis is compounded by the illegal mining operations that flourish as legitimate miners are forced underground by impossible fee structures. These illegal operators have even less incentive to follow environmental protocols. The irony is stark: while the Ministry claims to be formalizing artisanal and small-scale mining as part of its seven-point agenda, its policies are actually driving miners underground, creating more environmental damage and less regulatory oversight than before.

Meanwhile, foreign companies with ready access to capital and connections operate with impunity, extracting Nigeria’s resources while leaving behind environmental devastation and providing minimal benefit to local communities who bear the costs of contaminated ecosystems. The growing investment by Chinese players in downstream minerals processing, rather than in exploration and development of new mines, creates ready markets for illegally extracted minerals, establishing a parallel economy that benefits foreign processors while Nigerian communities and the national treasury receive nothing.

The Question of Competence vs. Intent

The pattern of policy failures raises a fundamental question: Is the Ministry incompetent or corrupt? Does it genuinely not understand how international mining investment works, or does it deliberately implement policies that serve interests other than national development?

The 50% GDP target suggests profound ignorance of mining economics. The fee structure that bankrupts local miners while generating impressive revenue numbers suggests a focus on short-term financial extraction rather than long-term sector development. The failure to acknowledge or address institutional corruption at the MCO suggests either wilful blindness or complicity. The corruption of new initiatives like the Mines Marshalls suggests that reform is impossible under current leadership because even new institutions are captured before they can function.

Whether through incompetence or intent, the result is the same: a mining sector in accelerating decline, local miners driven into bankruptcy or illegality, international investors fleeing, environmental destruction proceeding unchecked, and billions in potential revenue lost to corruption and dysfunction.

The Cost Question: At What Price “Transformation”?

Minister Alake is determined to transform the sector, but at what cost? At what cost to local miners forced into bankruptcy or illegality? At what cost to communities suffering environmental destruction? At what cost to national security when regulatory failure breeds insecurity and empowers criminal networks? At what cost to Nigeria’s international reputation when legitimate investors flee and arbitration cases loom?

The question “at what cost?” reverberates through every aspect of the current situation. The Minister’s determination has produced impressive revenue numbers but a sector in decline. It has produced bold targets but collapsing investor confidence. It has produced new institutions that are corrupted before they function and new policies that punish compliance while rewarding corruption.

Conclusion: When Ambition Becomes Delusion

Nigeria possesses significant mineral wealth that could drive economic development, create jobs, and reduce dependence on oil revenues. Realizing this potential requires realistic targets grounded in international mining economics, policies that enable rather than punish local investment, genuine security of title, environmental enforcement, and above all, addressing the institutional corruption that makes Nigeria’s mining sector toxic to legitimate investors.

Minister Alake’s 50% GDP target is not ambitious, it is delusional. His seven-point agenda does not address root causes. His revenue numbers mask the destruction of local mining operations. His reforms are corrupted before implementation. His rhetoric about international interest contradicts the reality of fleeing investors.

The Minister’s stated priorities reveal a profound disconnect from reality. Insufficient geological data, weak infrastructure, and informal operations are genuine challenges, but they pale in comparison to the fundamental problem the Ministry refuses to name: institutional corruption so deep and systematic that it has made Nigeria’s mining sector a cautionary tale rather than an investment destination.

Without a fundamental shift in approach, including realistic targets, affordable fee structures, genuine security of title, environmental enforcement, and above all, confronting rather than obscuring institutional corruption, the mining sector will continue its decline. The 21% drop in GDP contribution in 2024 is not an anomaly; it is the predictable result of policies disconnected from economic reality and a leadership either unable or unwilling to address the fundamental obstacles to sector development.

The minerals will remain in the ground long after current officials have departed. The question is whether Nigeria will have developed the institutional capacity, regulatory credibility, and economic understanding necessary to extract them responsibly and profitably, or whether fantasy economics and corrupted reforms will continue to ensure that Nigeria’s mineral wealth benefits everyone except Nigerians.

This article is based on multiple investigative reports, stakeholder accounts, public documents, and industry data detailing policy failures in Nigeria’s Ministry of Solid Minerals Development. The issues documented represent patterns identified by journalists, industry participants, and civil society observers concerned about governance in Nigeria’s mining sector.

INVESTIGATION: How Federal Government’s Abandonment of Strategic Manchok-Vom Road Strangles Economic Lifeline and Fuels Insecurity

By Steven Kefas

The sun beats down mercilessly on dozens of stranded vehicles along what should be one of Nigeria’s most vital economic arteries. For hours, commercial drivers, traders, and farmers have been trapped in a quagmire of mud, broken asphalt, and bureaucratic neglect that defines the current state of the Manchok-Ganawuri-Vom federal road.

This 52-kilometre stretch, designated as a federal highway, serves as a critical economic lifeline connecting Plateau State with Kaduna and numerous neighboring states across Nigeria’s Middle Belt region. Yet today, it stands as a monument to governmental abandonment and institutional failure.

The communities dotting this strategic corridor are among Nigeria’s most productive agricultural zones. Farmers here cultivate vast quantities of yam, maize, rice, potatoes, and ginger – crops that feed millions across the country. However, the deplorable condition of their primary route to market has transformed what should be prosperity into a daily nightmare of economic losses and human suffering.

“We produce enough food to feed millions of Nigeria, but we cannot get our harvest to the people who need it,” laments Musa Ibrahim, a farmer from Ganawuri whose truck loaded with yams overturned last month, destroying produce worth over 3 million naira.

The economic implications extend far beyond individual losses. Trucks carrying goods such as bottled drinks, water etc worth millions of naira regularly topple over on the treacherous terrain, their cargo spilling into roadside ditches where it rots under the elements. The ripple effects reach urban markets in Jos, Kaduna, and Abuja, where food prices continue to soar partly due to transportation challenges from these productive farming communities.

Perhaps the most insulting aspect of this crisis is the massive signpost erected by the Federal Road Maintenance Agency (FERMA) boldly declaring that the Manchok to Vom Junction stretch has been “rehabilitated.” This gigantic billboard stands as a cruel joke to daily road users who navigate crater-sized potholes and impassable mud pools.

All efforts to reach FERMA for comments on the road’s condition and their maintenance claims proved unsuccessful. Multiple phone calls to the two contact numbers listed on the agency’s official website went unanswered, while a text message sent seeking their response was never replied to.

A closer examination reveals the truth behind FERMA’s claims. While minor patch work was indeed carried out on sections with small potholes, the Ganawuri portion – the most critical and severely damaged section – remains completely untouched. It is a classic case of cosmetic intervention designed more for political optics than genuine infrastructure development.

The agency’s selective rehabilitation approach has created an even more dangerous situation. Drivers, encouraged by the initial smooth patches, accelerate into what becomes a vehicular trap at Ganawuri, where the road deteriorates so dramatically that vehicles frequently get stuck for entire days.

The federal government’s neglect has created an unprecedented situation where local youths have essentially privatized a federal highway. Young men from Ganawuri now control access to the most treacherous sections, strategically placing rocks across deep craters and charging motorists 500 naira for the privilege of attempting passage.

During this reporter’s investigation on Wednesday, August 27, the situation had reached absurd proportions. After paying 1,000 naira through mobile transfer for road access, this correspondent joined dozens of other vehicles in a hours-long traffic standstill that stretched for about 1 kilometre.

The scene resembled a refugee camp more than a major highway. Frustrated passengers had disembarked, seeking shade that did not exist on the road. Hawkers moved through the stationary traffic selling water, sugarcane, and snacks to stranded travelers. Mothers with crying babies pleaded with drivers to somehow find alternative routes that simply do not exist.

The agricultural community has been forced to adapt in ways that highlight the severity of the situation. Farmers who once loaded their produce onto trucks for efficient transport to distant markets now depend entirely on motorcycles for their logistics chain.

“I used to send bags of potatoes to Kaduna and Abuja markets in one trip,” explains Rebecca Dung, a potato farmer in the area. “Now I can only send two bags at a time on a motorcycle, and the transport cost has tripled. Many of us are considering abandoning farming altogether because we cannot transport our potatoes to the market and they go bad after a few days”

This shift from truck-based to motorcycle-based transportation has reduced agricultural efficiency by approximately 80 percent while increasing costs exponentially. The knock-on effects include reduced agricultural investment, lower crop cultivation, and ultimately, decreased food security for the broader region.

Commercial drivers operating along this route have become unwilling martyrs to federal government negligence. Michael Adamu, who has been plying this route for over a decade, provides a heartbreaking testimony of occupational hazard that no professional should endure.

“Any time I manage to pass this road with passengers during the rainy season like this, I have to go straight to the mechanic workshop,” Adamu reveals, his voice heavy with frustration. “We are suffering here as you can see, we have been here for several hours and don’t know when we will move. The government must do something about this road.”

His experience is not unique. Conversations with multiple commercial drivers reveal a pattern of vehicle damage, increased maintenance costs, and lost income that threatens their livelihoods. Some road users have developed back and joint problems from navigating the rough terrain, while others have abandoned the route entirely, reducing transportation options for rural communities.

The road’s deplorable condition has created a security vacuum that armed militants and criminals exploit with devastating consequences. Habu Lucky, a local vigilante member in Ganawuri, articulates a reality that government security strategists seem to have ignored completely.

“As you can see, the condition of this road also makes it difficult for security response. Even if there is a security challenge, how do you think security personnel can access the communities? Tell me,” he challenges, gesturing toward the impassable terrain.

His concerns proved tragically prophetic on December 22, 2024, when armed Fulani militants attacked Gidan Ado community in Ganawuri chiefdom, Riyom Local Government Area. Fourteen people, including a pregnant woman, were killed in an attack that security forces struggled to respond to effectively due to the impassable road conditions.

The incident illustrates how infrastructure neglect becomes a national security threat. When government forces cannot reach crisis zones quickly, local communities become sitting targets for criminal elements who understand the terrain’s strategic advantages.

The Manchok-Ganawuri-Vom road crisis demands immediate federal intervention that goes beyond the superficial patch work that has characterized previous efforts. What is required is comprehensive reconstruction that acknowledges this route’s strategic importance to Nigeria’s food security and regional economic integration.

The federal government must treat this highway with the urgency it deserves – as a critical piece of national infrastructure whose failure threatens the economic survival of entire communities and the food security of millions of Nigerians.

Until then, farmers will continue watching their harvests rot, drivers will keep visiting mechanics after every journey, and communities will remain vulnerable to security threats that thrive in the shadow of governmental neglect.

The question remains: How long will the federal government allow one of Nigeria’s most productive regions to remain economically strangulated by a road that should be connecting communities, not isolating them?

This investigation was conducted over multiple visits to the Manchok-Ganawuri-Vom corridor, with extensive interviews of affected stakeholders including farmers, commercial drivers, local leaders, and security personnel.

Colin Ikin’s Half-Billion Dollar Failure: A Cautionary Tale for Nigeria’s Mining Ambition

By Steven Kefas 

When Atlantic Mining CEO Colin Ikin walked into a high-profile meeting with the Kaduna State government in May 2025, promising a $300 million investment in the state’s solid minerals industry, officials likely saw dollar signs and job creation opportunities. This wasn’t Ikin’s first foray into Nigerian mining opportunities—in June 2024, he had visited Nasarawa State, meeting with Commissioner of Environment and Natural Resources, Hon. Kwanta Yakubu, to discuss establishing what he described as a “multi-million dollar lithium processing company.” The Australian mining executive painted a picture of economic transformation, positioning his company as a catalyst for diversifying Nigeria’s economy beyond oil dependency. But beneath the polished presentation and impressive financial commitments lies a cautionary tale that should give Nigerian authorities pause—one that underscores the critical importance of thorough background checks before opening the nation’s mineral wealth to foreign investors.

Nigeria stands at a crossroads in its economic development. With abundant mineral resources including gold, tin, lithium, coal, limestone, and rare earth elements scattered across its 36 states, the country possesses the raw materials to become a mining powerhouse. The federal government’s aggressive push to diversify from oil revenues has created unprecedented opportunities in the solid minerals sector. However, this gold rush atmosphere has also attracted a mix of genuine investors and opportunistic operators, making due diligence not just advisable but essential for protecting national interests.

A Multi-State Mining Campaign

Ikin’s Nigerian mining ambitions extend beyond Kaduna State. His June 2024 visit to Nasarawa State reveals a calculated strategy to establish footholds across multiple Nigerian states rich in mineral resources. During his meeting with Commissioner Yakubu, Ikin positioned himself as the managing director of “Atlantic Mining Techniques Ltd,” describing his company as “a Nigerian mining company” focused on the state’s lithium deposits.

Commissioner Yakubu’s Facebook post captured the optimistic tone of the meeting: “I welcomed Mr. Colin Ikin, Managing Director of Atlantic Mining Techniques Ltd, to Nasarawa State. Mr. Ikin’s visit is in connection with the potential establishment of a multi-million dollar lithium processing company in the state. This aligns with the industrialization agenda of His Excellency, Engr. Abdullahi A. Sule, Executive Governor of Nasarawa State.”

Ikin’s own comments during the Nasarawa visit echo the grandiose promises that characterized his Preston Resources era. “So my name is Colin Ikin, I’m the managing director of Atlantic Mining Techniques in Abuja. We are a Nigerian mining company and are here in Nasarawa today to look at this well-administered state that is endowed with some fantastic riches. At the moment we are looking at Lithium outcrops, of which there are many. I think this is a very exciting opportunity for us and for Nasarawa state,” he declared.

The pattern is familiar: identify mineral-rich locations, often discovered or already held by others, meet with government officials, make expansive promises about investment and job creation, and position projects as transformative opportunities. What’s concerning is how closely this mirrors the promotional strategy that preceded the Preston Resources disaster.

A Pattern of Spectacular Failure

Colin Ikin’s mining career in Australia reads like a masterclass in how not to manage large-scale mining operations. As executive chairman of Preston Resources, Ikin presided over what financial columnist Trevor Sykes(has won eight national awards and written eight books in his illustrious 61 years of journalism) described as one of the worst corporate disasters in modern Australian mining history—a spectacular collapse that wiped out nearly $750 million in investor funds and left a trail of financial devastation.

The Preston Resources saga began in the late 1990s when the company, under Ikin’s leadership, owned the Marlborough lateritic nickel deposit in Queensland. With shares trading at $1.90 and a market capitalization of $80 million, Preston appeared positioned for growth. However, Ikin’s decision to acquire the Bulong nickel project from Resolute Resources for $319 million—money the company didn’t have—would prove catastrophic.

The acquisition itself was structured in a way that left shareholders with little choice. Preston committed to a $10 million break fee to Resolute if the deal was rejected, but the company only had $2 million in the bank at the time. Shareholders were effectively held hostage by their own board’s commitments. Ikin’s promotional materials painted Bulong as “an outstanding opportunity,” promising initial output of 9,000 tonnes of nickel annually and describing Preston as “poised to become a significant international nickel producer.”

The reality proved starkly different. The Bulong plant never met production forecasts, cash flow projections failed to materialize, and Preston found itself in default to lenders for more than a year. By 2000, the company had accumulated losses of $497 million, with liabilities exceeding assets by $430 million. The Bulong plant was written down by $224 million, exploration expenditures were completely written off, and shareholders were entirely wiped out.

Perhaps most telling was the aftermath: Preston’s board, including Ikin, proposed handing over 95% of Bulong to note holders in exchange for debt relief, leaving the company with assets worth just $787,000 against liabilities of $5 million. Investors who had paid $1.50 per share to support the Bulong purchase were, in Sykes’ memorable phrase, “financially disembowelled.”

From Collapse to Opportunity

The financial press reported that after Preston’s collapse, Ikin had “quickly fallen on his feet with a new overseas gold project and a fashionable address in the south of France.” This pattern—moving from one jurisdiction to another after corporate failure—raises red flags that Nigerian authorities should carefully consider. The fact that Ikin emerged from a half-billion-dollar corporate disaster to pursue new mining ventures overseas suggests either remarkable resilience or concerning opportunism.

Industry sources who spoke on condition of anonymity have raised troubling questions about Ikin’s current operations. “Colin Ikin’s record of failure in mining is well documented by authorities in Australia,” said one mining title holder familiar with his background. “His pattern is to make grand promises, raise capital, and then struggle to deliver on projections.”

More concerning are allegations from mining sector players who claim Ikin may have used improper means to gain access to Nigerian mining opportunities. While these remain unverified allegations, they highlight the need for robust vetting processes. “There are questions about whether he has the financial backing he claims,” noted another industry source. “Nigeria can’t afford to hand over mineral assets to operators who lack both the capital and competence to develop them properly.”

Nigeria’s Mining Imperative

Nigeria’s push to develop its mining sector represents more than economic diversification—it’s a strategic necessity. With oil revenues volatile and global energy transitions underway, the country needs alternative economic pillars. The solid minerals sector offers immense potential: Nigeria possesses 44 different types of minerals across 500 locations, with estimated reserves worth over $700 billion.

However, transforming this potential into reality requires partners with proven track records of successful project delivery. The mining industry is notoriously capital-intensive and technically complex, demanding expertise in geology, engineering, environmental management, and community relations. Failed mining projects don’t just waste investment capital—they can cause lasting environmental damage, displace communities, and poison relationships between government and investors.

The Kaduna and Nasarawa state governments’ enthusiasm for Ikin’s proposed investments is understandable. The promise of hundreds of millions in investment, lithium processing facilities, and job creation is attractive for states seeking economic development. However, the Preston Resources debacle demonstrates that ambitious promises from mining executives don’t always translate into operational success.

The Due Diligence Imperative

Nigerian authorities at federal and state levels must implement rigorous due diligence processes before approving major mining investments. This should include comprehensive background checks on company executives, verification of claimed financial resources, technical audits of proposed mining methods, and environmental impact assessments.

The Australian Securities Exchange and financial media provide extensive documentation of Preston Resources’ collapse, offering Nigerian authorities a clear picture of Ikin’s previous performance. Australian regulatory bodies and industry associations can provide additional insights into his reputation and capabilities. Such information is publicly available and should be mandatory reading for any Nigerian official considering mining partnerships.

Furthermore, Nigerian authorities should demand proof of funding before approving mining licenses. Letters of intent and preliminary agreements are insufficient—actual capital commitments from verified financial institutions should be required. The Preston Resources case shows how companies can leverage debt and equity markets to fund operations they cannot sustain, leaving investors and host communities to bear the costs when projects fail.

Building Mining Excellence

Nigeria’s mining sector development requires partners who bring not just capital but proven expertise in sustainable mining practices. The country needs investors who understand that successful mining projects require long-term commitment, community engagement, environmental stewardship, and technical excellence.

Countries like Ghana, Botswana, and South Africa have built successful mining industries by carefully selecting international partners and insisting on high operational standards. Nigeria can follow similar models, but only if it maintains rigorous standards for foreign investment approval.

The solid minerals sector represents Nigeria’s best opportunity to create an economy less dependent on oil revenues. However, this transformation requires careful stewardship of mineral resources and partnerships with operators who have demonstrated competence in managing large-scale mining operations.

The Path Forward

As Nigerian authorities evaluate Atlantic Mining’s proposals and other foreign mining investments, they must balance the urgent need for economic diversification against the imperative of protecting national resources. The Colin Ikin story serves as a powerful reminder that impressive presentations and ambitious financial commitments mean little without the track record and resources to deliver results.

Nigeria’s minerals belong to its people and future generations. Handing them over to operators with histories of corporate failure—regardless of their promotional skills or political connections—would represent a betrayal of the national trust. Due diligence isn’t just good governance; it’s essential for ensuring that Nigeria’s mining revolution creates lasting prosperity rather than expensive disappointment.

The choice facing Nigerian authorities is clear: rush into partnerships with questionable operators and risk repeating the Preston Resources disaster on Nigerian soil, or implement rigorous vetting processes that attract genuine investors capable of unlocking the country’s mineral wealth responsibly. The stakes are too high for anything less than excellence in partner selection.

The gold rush mentality that has gripped Nigeria’s mining sector must be tempered with wisdom learned from other countries’ experiences. Australia’s mining industry, despite its overall success, is littered with failed projects and collapsed companies. Nigeria can avoid similar pitfalls by learning from these failures and demanding higher standards from potential partners.

As Colin Ikin and Atlantic Mining await decisions from Nigerian authorities in Kaduna, Nasarawa, and potentially other states, the question isn’t whether Nigeria needs foreign investment in mining—it clearly does. The question is whether the country will settle for any investor willing to make promises, or insist on partners with the competence and resources to keep them. With Ikin’s multi-state campaign already underway, Nigeria’s economic future may well depend on getting this calculation right.

Steven Kefas is mining and mineral resources enthusiast and writes from Kaduna state

Transforming Kaduna’s Revenue Landscape: Comrade Jerry Adams’ Visionary Leadership at KADIRS

In the heart of Kaduna State, a quiet revolution is reshaping the financial future of the region, led by the dynamic and innovative Comrade Jerry Adams, Executive Chairman of the Kaduna State Internal Revenue Service (KADIRS). Since assuming the role of acting executive chairman in July 2023, this seasoned tax administrator has spearheaded groundbreaking initiatives that have redefined revenue administration in Nigeria’s northern region.

Record-Breaking Performance

Adams’ strategic foresight and commitment to transformative governance have propelled Kaduna’s Internally Generated Revenue (IGR) to unprecedented heights. Under his astute leadership, KADIRS has not only solidified its position as Northern Nigeria’s highest revenue-generating state but has also set new benchmarks for fiscal transparency and accountability, achieving N62.49 billion in 2023, N70 billion in 2024, and targeting an ambitious N112 billion for 2025.

Early indicators suggest this ambitious target is achievable, with January and February 2025 alone recording collections of N14.16 billion. His leadership is marked by a blend of technological innovation, financial inclusion, and a people-centric approach that has revitalized the state’s economy and restored public trust in KADIRS.

Innovation-Driven Solutions

Recognizing that major sources of revenue for the state have dried up, Adams has championed groundbreaking technological solutions. In May 2024, KADIRS launched two transformative platforms: Project CRAFT and the PayKaduna Portal.

Project CRAFT, which stands for Cross-Systems for Revenue Administration and Fiscal Transparency, marks the beginning of a new era in revenue generation and management for Kaduna State. The Central Data Repository (CDR) established under Project CRAFT ensures secure, state-owned management of taxpayer data, enabling informed decision-making and strategic planning.

The PayKaduna Portal allows residents and businesses to pay taxes remotely, fostering a seamless, transparent process that has significantly boosted voluntary tax compliance. The chairman emphasized that these initiatives represent not just technology but a transformative approach to governance, allowing the state to leverage advanced data analytics and automation to enhance revenue generation capacity, curb leakages, and improve service delivery.

Business-Friendly Policies and Economic Impact

Comrade Adams’ innovative horizontal expansion of the tax base, as opposed to increasing tax rates, has created a business-friendly environment that encourages economic growth. This strategy has attracted companies to invest in the state. A typical example is the $50 million Soya Bean Oil Refining Plant investment by Sunagrow International Oil Limited.

Governor Uba Sani’s administration, under Adams’ guidance, has embraced a “Tax for Service” motto, with visible projects in road construction, education, and rural transformation demonstrating the tangible impact of increased revenue. Adam’s enforcement of tax compliance, such as addressing Kaduna Electric’s N600 million tax liability, reflects his unwavering commitment to equitable taxation without burdening the poor.

Jerry Adams brings over 23 years of professional experience as a seasoned tax administrator, chartered accountant, business development expert, and marketer. His appointment as Executive Chairman built upon his previous role as Executive Director of Corporate Services, where he demonstrated exceptional competence in revenue administration.

Building Interstate Collaboration

Adams’ expertise has gained recognition beyond Kaduna’s borders. In July 2024, the Katsina State Internal Revenue Service delegation visited KADIRS for a peer review engagement, with Adams promising to share necessary information to propel the sister agency’s performance. He has also hosted delegations from organizations like the Danube Institute, fostering knowledge-sharing and regional collaboration.

His collaboration with the Code of Conduct Bureau in June 2025 underscores his dedication to ethical standards within KADIRS, positioning Kaduna as a leader in innovative tax administration. This demonstrates the national significance of Kaduna’s revenue transformation model.

Addressing Contemporary Challenges

The KADIRS chairman has been transparent about the fiscal realities facing Nigerian states. He acknowledged that traditional revenue sources have dried up, necessitating out-of-the-box innovations to identify revenue potential and block leakages. This honest assessment has informed the strategic pivot toward technology-driven solutions.

The PayKaduna Portal specifically addresses taxpayer convenience, providing seamless payment processes across the state. This digital approach reduces bureaucratic bottlenecks while ensuring transparency in revenue collection and management.

Strategic Vision and Future Outlook

Adams’ leadership philosophy centers on fiscal transparency and accountability. The Cross-Systems approach embedded in Project CRAFT creates interconnected revenue administration processes, minimizing human interference and potential corruption while maximizing collection efficiency.

His strategic focus on data analytics represents a paradigm shift from traditional tax administration methods. By leveraging technology, KADIRS can identify previously untapped revenue sources, track compliance patterns, and provide predictive insights for policy formulation.

Impact on Governance

The revenue transformation under Adams’ leadership has broader implications for Kaduna State’s development trajectory. Increased IGR provides the state government with greater fiscal autonomy and capacity to fund critical infrastructure and social programs without excessive dependence on federal allocations.

The initiatives leverage advanced data analytics and automation to enhance revenue collection, curb leakages, and improve service delivery, creating a multiplier effect that benefits citizens through improved public services.

Looking Ahead

As KADIRS pursues its ambitious N112 billion target for 2025, Adams’ leadership continues to emphasize sustainable revenue growth through innovation and stakeholder engagement. The success story of Kaduna’s revenue transformation offers valuable lessons for other states seeking to optimize their internally generated revenue.

Under Comrade Jerry Adams’ stewardship, KADIRS has evolved from a conventional tax collection agency into a modern, technology-driven revenue administration system. This transformation positions Kaduna State as a model for fiscal innovation in Nigeria’s evolving economic landscape, demonstrating that strategic leadership and technological adoption can overcome traditional revenue challenges.

The journey ahead promises continued innovation as Adams and his team work toward making Kaduna a reference point for efficient, transparent, and citizen-friendly revenue administration across Nigeria.

Powder Keg in the Creeks: Niger Delta Militants Threaten Nigeria’s Economic Lifeline

By Steven Kefas

(PortHarcourt), Nigeria’s fragile economic recovery faces a new threat as militants in the oil-rich Rivers State issue ultimatums that could destabilize the nation’s primary revenue source amid a complex political crisis.

A chilling video emerged Thursday showing armed militants from the Niger Delta Rescue Movement (NDRM) threatening to attack oil installations in Rivers State, one of Nigeria’s largest oil producers. The militants, brandishing AK-47 rifles and other dangerous weapons from an undisclosed forest location, issued warnings that could potentially cripple Nigeria’s oil production and further destabilize an economy already on life support.

The group’s emergence comes in response to a political crisis that has seen the federal government withhold Rivers State’s allocation following a Supreme Court judgment that upheld the Martin Amaewhile-led 27-member House of Assembly as the legitimate legislative body. The Assembly subsequently issued a 48-hour ultimatum for Governor Siminalayi Fubara to present the 2025 state budget, which expired Wednesday night.

In the video lasting just over three minutes, a spokesman for the militants declared, “If the federal allocation due to Rivers state cannot be released promptly, we will have no choice but to take decisive action, including hitting oil production.” The militants also ominously advised non-indigenes to leave Rivers State for their safety, chanting “asawana, asawana” – a traditional war cry among the Ijaw people.

Economic Implications

For an economy struggling to find its footing, the timing couldn’t be worse. Nigeria’s recent modest economic gains have hinged largely on improved oil production after years of decline due to theft, vandalism, and underinvestment.

Dr. Adebayo Adegbine, a Lagos based Economist, warns that any disruption to oil production in Rivers State would deliver a devastating blow to Nigeria’s economy.

“The federal government has only recently begun to see slight improvements in oil output, which remains the backbone of our export earnings and government revenue,” Adebayo told TruthNigeria. “If militants carry through with their threats and successfully target key oil infrastructure, we could see production drop by as much as 300,000-400,000 barrels per day or even more. The ripple effects would be catastrophic – from exchange rate instability to budget deficits and delayed salary payments across multiple states.”

The threat evokes painful memories of the 2003-2009 insurgency, when militant groups like the Movement for the Emancipation of the Niger Delta (MEND) reduced Nigeria’s oil production by more than 50 percent through a coordinated campaign of pipeline bombings, facility attacks, and kidnappings of oil workers. At its peak, the violence slashed production from 2.2 million barrels per day to barely 1 million, costing the nation an estimated $100 billion in lost revenue in 10 years. The petroleum industry’s vulnerability was exposed as multinational companies declared force majeure and evacuated non-essential staff, while insurance premiums for operations in the region skyrocketed. It wasn’t until the 2009 amnesty program offered militants training, stipends and reintegration opportunities that relative stability returned to the region. “We’ve been here before,” notes energy consultant Ebi Johnson to TruthNigeria. “And the economic recovery took years, even with higher global oil prices than we have today.”

Nigeria’s economy has barely emerged from a period of hyperinflation, with the naira stabilizing slightly after months of freefall. The Central Bank has been working to rebuild foreign reserves, largely dependent on oil export earnings.

“We’re looking at a potential economic catastrophe if oil installations are attacked,” explains financial analyst Chika Okonkwo to TruthNigeria. “With government borrowing already at unsustainable levels and debt servicing consuming nearly 97% of revenue, any significant drop in oil output would likely trigger another currency crisis and inflation spike that could push millions more Nigerians into poverty.”

Why Americans Should Care

The brewing crisis has implications well beyond Nigeria’s borders, particularly for American consumers and businesses. As one of the largest oil suppliers to the United States, Nigeria’s production disruptions directly impacts global energy markets and prices at American pumps. Rivers state produces 344,000 barrels of crude per day.

Security Overstretched

The threat of renewed militancy in the Niger Delta represents more than just an economic challenge – it poses a serious security dilemma for a military already stretched across multiple conflict zones.

Dr Walid Abdullahi, a security consultant, describes the situation as potentially unmanageable.

“The Nigerian military is already fighting on at least four fronts – against Boko Haram and ISWAP in the Northeast, containing Lakurawa terrorists in the Northwest, managing deadly farmer-herder conflicts in the North Central states, and addressing banditry across multiple regions,” Abdullahi explained to TruthNigeria. “Opening another active theater in the Niger Delta would severely strain our operational capacity and effectiveness.”

The complexity of Niger Delta operations presents unique challenges. The region’s network of creeks, swamps, and waterways requires specialized training and equipment, including naval assets that are already in short supply.

“The terrain in the Niger Delta is notoriously difficult for conventional military operations,” notes Dr. Abdullahi “Previous militant campaigns demonstrated how relatively small groups could effectively evade security forces while targeting critical infrastructure. The military simply doesn’t have the resources or specialized units needed to secure thousands of kilometers of pipelines and oil facilities while maintaining operations in other conflict zones.”

Political Dimensions

The crisis is deeply rooted in the political standoff between incumbent Governor, Similaye Fubara and his predecessor Nyesom Wike, now Minister of the Federal Capital Territory. The militants explicitly mentioned Wike in their statement, accusing him of orchestrating the crisis to undermine Fubara’s administration.

“We call on President Bola Tinubu to intervene immediately and put a stop to the action of the Minister, Nyesom Wike, and his associates whose intent is to drag Rivers state to avoidable crisis,” the group stated.

Political analysts suggest the federal government faces a precarious balancing act. “Heavy-handed intervention could further inflame tensions, while inaction might allow the situation to deteriorate beyond control.” Says Michael Udeme, Uyo-based political scientist to TruthNigeria

Path Forward

Security experts emphasize that only a political solution can prevent potential catastrophe.

“Military action alone cannot resolve this situation,” warns Udeme. “The federal government must immediately convene all stakeholders – including Fubara, Wike, community leaders, and civil society – to address the legitimate grievances while isolating those seeking to exploit the situation for violence.”

For ordinary Nigerians already struggling with economic hardship, the prospect of disrupted oil production represents yet another threat to their livelihoods and stability.

As Rivers State residents anxiously await developments, the nation holds its breath, hoping that cooler heads will prevail before the powder keg in the Niger Delta ignites a crisis Nigeria can ill afford.

Food Security: The Lean Season And Implications For 25 Million Citizens

By Daniel Anazia

Nigeria is currently battling many problems. In this report, DANIEL ANAZIA looks at how the country can work its way out of food insecurity.

Food security is a growing challenge across the globe today. It is a phenomenon that is multi-dimensional with economic, environmental and social angles. Unfortunately, the greater share of the population of the undernourished is located in the developing countries.

Efforts have been made to improve the quality as well as the production of food supplies. However, food insecurity remains prevalent, especially in Nigeria, as the country battles with insecurity, slow economic growth, multidimensional poverty, debt burden, unemployment, rising inflation and high food prices, among other socio-economic challenges.

As part of his administration’s short, medium and long-term strategies towards addressing the challenges of food affordability and accessibility in the country, President Bola Ahmed Tinubu in July declared an immediate ‘State of Emergency’ on food insecurity in the country.

The move, many have said, is part of an aggressive push to boost agricultural productivity and reduce the high prices of major staple foods in Nigeria.

In a statement, the then Special Adviser on Communication, Special Duties and Strategy, now Minister of Solid Minerals, Dele Alake, had noted: “Mr President is not unmindful of the rising cost of food and how it affects the citizens.

“While availability is not a problem, affordability has been a major issue for many Nigerians in all parts of the country. This has led to a significant drop in demand thereby undermining the viability of the entire agriculture and food value chain.”

The United Nations, through one of its agencies, the Food and Agriculture Organisation (FAO), stated that ‘food security’ is attained when all people, at all times, have physical and economic access to sufficient, safe and nutritious food that meets their dietary needs and food preferences for an active and healthy life.

It further explained it as the state at which individuals have sufficient food to generate a calorie requirement of about 2,200–2,300 calories per day for adult females and 2,900–3,000 (about 8-10 kg of maize flour) calories per day for adult males, while children require a lower calorie level to maintain adequate health.

At the beginning of the year, the UN agency in a report, projected that 25.3 million people in Nigeria would face acute food insecurity during the June to August 2023 lean season if urgent action is not taken. This is a projected increase from the estimated 19.45 million forecasts in 2022.

According to the report, the state of insecurity in northern Nigeria plays a major role in the projected rate of food insecurity in the country. “Acute food insecurity is mostly driven by the deterioration of security conditions and conflicts in northern states, which as of March 2022 (latest data available) have led to the displacement of about 3.17 million people and are constraining farmers’ access to their lands,” the report said.

In Nigeria, seven out of 10 citizens reportedly do not have enough food to eat, as it is the most basic of all human survival needs.

This was affirmed by the World Food Programme (WFP) in its food security update report titled: ‘HungerMapLIVE: Nigeria Insight and Key Trends’ published on July 27, 2023, where it declared that 19.5million Nigerians are faced with acute hunger.

According to the report, 76.3million Nigerians were faced with insufficient food consumption as of April 28, while the situation improved as the figure dropped to 74.1million on July 27, when the report was published.

This situation is worsened by yearly flooding, one of the country’s most prevalent natural disasters occasioned by the rainy season.

During the rainy seasons, from March to July and mid-August to mid-October in the south, and July to October in the north, major rivers often burst their banks, just like the dams burst too.

The unending violence in the Northeast states of Borno, Adamawa and Yobe (BAY), and armed banditry and kidnapping in Katsina, Sokoto, Kaduna, Benue and Niger states respectively have further exacerbated food access, just as climate change, inflation and rising food prices are said to be contributing to the alarming trend.

Of the 19.5million Nigerians faced with acute hunger, three million are in the northeast BAY states (Borno, Adamawa and Yobe). Alongside a deepening food crisis in these states, a worrying nutrition crisis is rapidly unfolding. Therefore, without immediate action, this figure is expected to increase to 4.4 million in the lean season.

The figure, according to the UN Resident and Humanitarian Coordinator, Matthias Schmale, includes, highly vulnerable displaced populations and returnees who are already struggling to survive a large-scale humanitarian crisis in which 8.3 million people need assistance.

He said, “the food security and nutrition situation across Nigeria is deeply concerning. I have visited nutrition stabilisation centres filled with children who are fighting to stay alive. We must act now to ensure they and others get the life-saving support they need.”

Schmale noted that children are the most vulnerable to food insecurity, stressing that approximately six of the 19.5million food-insecure Nigerians today are children under age five living in Borno, Adamawa, Yobe, Sokoto, Katsina and Zamfara states.

“There is a serious risk of mortality among children attributed to acute malnutrition. In the BAY states alone, the number of children suffering from acute malnutrition is expected to increase from 1.74 million in 2022 to two million in 2023.

“I am particularly concerned about the 700,000 children under five who are at risk of severe acute malnutrition. This is more than double the cases in 2022 and the highest levels projected since the nutrition crisis in 2016,” the UN chief said.

He continued: “Malnutrition will increase their risk of dying from common infections, including acute watery diarrhea, cholera and malaria, whose incidence will increase in the rainy season which coincides with the lean season. We cannot allow this to happen.

“The bad news is that many stabilisation centres and outpatient therapeutic feeding programmes have shut down due to lack of funding. The good news is that there is capacity among humanitarian partners to address both the food security and nutrition crisis.”

According to him, the increasingly alarming food security and nutrition crisis is primarily the result of years of protracted conflict and insecurity which continue to prevent many people from growing the food they need or earning an income to procure food.

“Conflict and insecurity have forced more than two million people, mainly from remote rural agricultural settlements to flee their homes in search of refuge in urban communities. Most are living in so-called garrison towns where they have few, if any, alternative livelihoods to farming.

“While there have been some improvements in access to agricultural lands in areas around the garrison towns in recent months, people who venture beyond the protective trenches surrounding these towns do so at great peril.

“Killings, abductions, forced recruitment and sexual and gender-based violence are some of the risks that farmers, foragers and others are exposed to outside the protective environs of these settlements,” Schmale stated.

He said the food and nutrition crisis in BAY states is compounded by multiple factors. Among them are the spiking fertiliser prices globally due to the conflict in Ukraine; high pump price of fuel and the corresponding high prices of foodstuffs necessitated by inflation.

According to him, the naira cash crisis earlier in the year disrupted the functioning of markets with adverse impacts on many people. Extreme weather shocks due to climate change, such as the floods witnessed in 2022, also exacerbated this crisis.

“The floods affected more than four million people across Nigeria and damaged hundreds of thousands of hectares of farms close to the harvest. These factors and others have combined to leave 4.3 million people at risk of severe hunger during the lean season, the period between harvests when people typically struggle to meet their food needs.

“According to the Government-led Cadre Harmonise analysis, more than 500,000 of these people will face emergency levels of food insecurity with extremely high rates of acute malnutrition and cases of mortality predicted over the period. Without additional funding, humanitarian organizations will only be able to reach about 300,000 of these at-risk people.

“To prevent this crisis from getting worse, humanitarian organisations as soon as possible need to prioritise the $396 million this year’s Humanitarian Response Plan appeal. This will allow them to rapidly scale up both food and nutrition assistance, and other supporting interventions, including clean water and sanitation, healthcare, protection and logistics,” he said.

Prevalence of insufficient food
consumption and market access
ACCORDING to the WFP HungerMapLIVE report, currently, the regions (states) with the highest prevalence of insufficient food consumption in order of severity are: Katsina (60 per cent), Borno (58 per cent), Zamfara (57 per cent), Sokoto (56 per cent), Bauchi (56 per cent), Niger (56 per cent), Yobe (55 per cent), Jigawa (55 per cent), Gombe (53 per cent), Kebbi (51 per cent), Taraba (49 per cent), and Kaduna (47 per cent).

These regions account for 50 per cent of the total number of people with insufficient food consumption in Nigeria – amounting to approximately 36.9 million people, increasing by 1.10 million (3.1 percent) compared to March this year.

To support the global COVID 19 response, the WFP expanded its near real-time remote monitoring systems to assess the food-based coping situation in Nigeria. And the regions with the highest prevalence of crisis or above crisis -level food-based coping strategies Yobe (52 per cent), Borno (46 per cent), Adamawa (45 per cent), Osun (37 per cent), Ondo (37 per cent), Ebonyi (37 per cent), Bayelsa (37 per cent), Oyo (36 per cent), Delta (36 per cent), Ekiti (33 per cent), Imo (32 per cent), and Anambra (31 per cent).

On the highest prevalence of challenges accessing markets, Borno leads with 71 per cent; Yobe (58 per cent), Adamawa (53 per cent), Zamfara (39 per cent), Katsina (39 per cent), Jigawa (37 per cent), Bauchi (37 per cent), Niger (33 per cent), Kano (33 per cent), Sokoto (32 per cent), Taraba (32 per cent), and Benue (30 per cent).

From the data showing the summary of food security and related metrics in Nigeria as of July 27, 2023, when the report was published, Kano, Katsina and Kaduna were the top three states hit by the challenges of insufficient food consumption and accessing markets respectively.

While Kano is the worst-hit state with 6.93 million of the referenced population facing insufficient food consumption, 4.86 million people are challenged with accessing markets.

Katsina is next with 4.67 million people faced with insufficient food consumption challenge, just as 3.02 million people are confronted with the challenge of accessing markets. Kaduna follows with 4.38 million people challenged with insufficient food consumption, while 2.39 million people are faced with the challenge of accessing markets.

Notwithstanding the insurgency in Adamawa State, the population of the people faced with insufficient food crisis is put at 2.11 million, while 2.63 million people battle with accessing markets. Borno recorded 3.41 million suffering an insufficient food crisis, just as 4.16 million of the referenced population cannot access the markets.

Yobe State had 2.38 million people affected with insufficient food challenge, while 2.50 million of the population cannot access the markets. Zamfara state recorded 1.98 million people affected by insufficient food crisis, while 1.34 million of the referenced population is unable to access the markets.

Despite being the food basket of the nation, Benue State had 2.09 million of its population battling insufficient food crisis, just as 1.87 million struggle to access the markets, while the neigbouring Nasarawa, another agrarian state, recorded 0.95 million people being confronted with insufficient food crisis, and 0.67 million people unable to access the markets.

As the country’s commercial nerve centre, Lagos recorded 3.07 million people suffering from insufficient food crises, and 2.69 million people unable to access the markets. This is notwithstanding the peace and calm enjoyed in the state.

Major drivers and factors
SOME of the major drivers and factors identified to be contributing to food insecurity in Nigeria include poverty, climate change, conflict and insecurity, increasing population, poor policy implementation, inefficient agricultural practices, post-harvest losses and low budgetary allocation to agriculture, among others.

Poverty
FOLLOWING the economic turbulence experienced in the country in the past decade, the number of people living in extreme poverty in Nigeria has been increasing significantly.

According to a 2023 data by the World Poverty Clock, a tool used to track poverty progress worldwide, there are 71 million extremely poor Nigerians, and the National Bureau of Statistics (NBS) classifies 133 million people as multi-dimensionally poor.

German online platform specialised in data gathering and visualisation, Statista, reported that the population of Nigerian men living in extreme poverty rose from 35.3 million in 2016 to 44.7 million in 2022, just as that of women increased from 34.7 million to 43.7 million in the same period.

Data on the platform’s website showed that in 2022, an estimated population of 88.4 million people in Nigeria lived in extreme poverty. While the number of men living on less than $1.90 per day in the country reached around 44.7 million, the count was at 43.7 million for women.

In effect, high levels of poverty make it difficult for people to access and afford nutritious food.

Harsh weather and floods
HARSH weather patterns, extreme temperatures, floods and droughts impact agricultural productivity and food production not only in Nigeria but across the globe. Within the past decades, the impact of climate conditions is evident on crop production across the country’s different regions.

Flooding is one of the effects of climate change and variability impacting Nigeria. Data from the Nigerian Meteorological Agency (NiMet) shows that the duration and intensity of rainfall have changed from normal across some states over the years, with devastating impacts on agricultural practices.

Last year, Nigeria witnessed one of its worst floods in the last 10 years, as hundreds of villages and urban centres particularly in Kogi, Anambra, Delta, Bayelsa, Rivers and Benue among others were submerged in waters, displacing over 2.4 million people.

According to official statistics, over 600 Nigerians died in the disaster, while expansive hectares of farmlands were also destroyed, with ripple effects on the country’s state of food availability, affordability and safety.

NiMET in its 2023 Seasonal Climate Predictions (SCP) forecast published in January stated that Nigeria and indeed Nigerians would witness heavy flood, as it revealed the impending flooding will lead to devastating effect on farming and result in food shortages.

Presenting the report, the Director-General of NiMET, Prof. Mansur Matazu, confirmed the fear of most Nigerians, and noted that flooding is a natural event and with the increase in climate change activities Nigerians are going to see more floods because climate change is due to increasing temperature.

His words: “Increased temperature means the atmosphere will be more pregnant to contain more water in the form of a water depot. And that means more rain and the rain will come in high intensity, but short duration. So the length of the season has been reducing, but the intensity and amount of the rain is increasing.

“That gives more volume of water within a limited time and that’s what now triggers the flash floods after rainfall in cities and the riverine floods, leading to overflowing of rivers, especially during July to September.”

Matazu stated that in the south, around April, May, and June, there is usually flash flood season in the region as the season begins around the period. He added that NiMET is working with the National Emergency Management Agency (NEMA) and the National Analytical Services. “They also complement our effort by providing flood forecasts around March and April,” he said.

The NEMA boss noted that the widespread flooding in the 2022 rainy season damaged more than 676,000 hectares of farmlands, which diminished harvests and increased the risk of food insecurity for families across the country.

He added that more extreme weather patterns affecting food security are anticipated in the future. He stated that starting in March, the coastal areas in the south-south, particularly Bayelsa, Akwa Ibom and Rivers, will experience torrential rains.

Conflict and insecurity
ANOTHER key driver or factor leading to food insecurity is conflict. In conflict, civilians are frequently deprived of their income sources and pushed into acute food insecurity. Food systems and markets are disrupted, pushing up food prices and sometimes leading to scarcities of water and fuel, or of food itself.

Violent conflicts such as, farmer-herder disputes, insurgency, banditry, gang wars and separatist agitations have continued to afflict the country with many killed and being killed, properties destroyed, worsening poverty, and displacement (an estimated 3.1 million internally displaced people as of November 2022).

The conflicts and worsening insecurity in certain regions of the country, especially in the northeast, northwest and north-central have equally disrupted agricultural activities and displaced farmers. This has hindered food production and distribution, as many farmers are unable to visit their farmlands for fear of attacks by bandits or herdsmen in the last 10 years.

According to Nigeria Watch in its Eleventh Report on Violence published in 2021, violence in Nigeria claimed 13,537 lives in 2021 alone, with Borno State accounting for the highest number of fatalities (1,853), followed by Zamfara (1,516), Kaduna (1,342), Niger (935), and Benue (625).

On the other hand, Gombe, Ekiti, Bayelsa, Adamawa, and Cross River states recorded the lowest number of fatalities in 2021. Zamfara State was the most dangerous state in 2021. It recorded 28.9 fatalities and homicides per 100,000 inhabitants.

By contrast, Gombe, Ekiti, and Kano were the least violent states.

Violence involving farmers and suspected herdsmen claimed 703 lives in 2021, against 616 in 2020. Overall, 21 states recorded fatalities resulting from pastoral conflicts. Benue, Plateau, and Ebonyi were most affected. By contrast, very few incidents related to such clashes were reported in Abia, Akwa Ibom, and Rivers.

HungerMapLIVE in its July 27 report noted that in June, 468 conflicts and violence-related fatalities were recorded in the country. From the data in the report, Borno is the worst-hit state with 3.08 per 100,000 people (39 percent). Plateau State is next with 1.45 per 100,000 people (14 percent)

Others are Zamfara 0.86 (6 per cent), Benue 0.68 (9 per cent), Katsina 0.50 (8 per cent), Taraba 0.38 (3 per cent), Imo 0.22 (3 per cent), Enugu 0.21 (2 per cent), Cross River 0.19 (1 per cent) and Edo 0.16 (1 per cent).

From the data above, the current situation of food security (prevalence and number of people with insufficient food consumption) in regions with the greatest incidence of conflict-related fatalities showed that Katsina is leading the pack with 4.67 million people.

Borno follows with 3.41 million people, Rivers is next with 2.13 people; Benue 2.09 million, Zamfara 1.98 million, Plateau 1.96 million, Taraba 1.68 million, Ogun 1.48, Enugu 1.22 million, Cross River 1.11 million, Edo 1.08 million and Imo 0.85 million.

In the current situation states and people unable to access the markets (prevalence and number of people with challenges accessing markets) following incidence of conflict-related fatalities, Borno leads with 4.16 million people.

It is followed by Katsina with 3.02 million; Niger 2.03 million, Rivers 1.97 million, Benue 1.87 million, Zamfara 1.34 million, Ogun 1.33 million, Plateau 1.24 million, Taraba 1.10 million, Edo 1.08 million, Enugu 1.04 million and Cross River 0.93 million.

Amnesty International in its newsletter of June 14, 2023, noted that more than 120 people have been killed and 468 conflict and violence-related fatalities since President Bola Ahmed Tinubu’s inauguration.

On June 9, in Plateau State, gunmen killed 25 people in Katako Village before killing another 13 individuals in Kusherki town on June 10, while a gunman shot dead at least 21 people on June 11.

Throughout May 2023, at least 100 people were killed in various communities of Benue State. Between 15-17 May, over 100 people were killed in the Mangu region of Plateau state. While in southern Kaduna, over 100 people were killed by gunmen between December 2022 and April 2023.

Responding to the gun violence, Amnesty International Acting Nigeria Director, Isa Sanusi, said: “It is horrific that attacks by gunmen have claimed at least 123 lives mere weeks after President Bola Tinubu assumed office on 29 May. Rural communities, always bracing themselves for the next bout of violence, are facing deadly attacks by rampaging killers. Protecting lives should be the utmost priority of the new government. The Nigerian authorities must urgently take steps to stop the bloodletting.

“The brazen failure of the authorities to protect the people of Nigeria is gradually becoming the ‘norm’ in the country. The government said it will enact security measures in response to these attacks, but these promises have not translated into meaningful action that protects the lives of vulnerable communities. The Nigerian authorities have also consistently failed to carry out independent, effective, impartial and thorough investigations into these killings – and this is fuelling impunity.”

UN’s $20million ramp-up allocation bailout
TO cushion the effect of food insecurity in this lean season, the United Nations allocated $20 million dollars to urgently ramp up the response to the alarming food security and nutrition crisis in the North-East region of Nigeria.

UN Deputy Spokesperson Farhan Haq disclosed this at a news conference at UN headquarters in New York. He said, “With nine million dollars from the Central Emergency Response Fund and $11 million from the Nigeria Humanitarian Fund, we will support the government-led response efforts across Borno, Adamawa and Yobe states. Assistance includes ready-to-eat food, access to clean water, health care and agriculture support.”

According to Haq, the emergency funding would help jumpstart the response, but noted that humanitarian partners need more to prevent widespread hunger and malnutrition. “The $1.3 billion humanitarian response plan for Nigeria is only 26 percent funded,” he added.

According to humanitarian partners, almost 700,000 children under five are likely to suffer from life-threatening severe acute malnutrition this year in this region and more than half a million people may face emergency levels of food insecurity during the lean season from June to August.

To roll back this tide of misfortune, the federal government must act fast because the country cannot afford to allow food insecurity to be added to the legion of problems facing the country.

SOURCE: The Guardian

CAN To Tinubu: Do Something, Nigerians are Suffering And Dying

The Christian Association of Nigeria (CAN), Northern bloc, comprising the 19 Northern States and the Federal Capital Territory (FCT) has appealed to President Bola Tinubu to urgently find a lasting solution to hunger and mass poverty among ordinary Nigerians following the removal of fuel subsidy by him on May 29, 2023.
The organisation, in a communique issued at the end of a three-day meeting in Kaduna, chaired by its President, Rev. Yakubu Pam, declared that Nigerians are suffering due to the subsidy removal, noting that “life in the country today is becoming a living hell as prices of food, transportation and other essential commodities have gone up beyond the reach of the poor masses.”

The Northern CAN said subsidy removal had left Nigerians hungry as poverty has taken over the entire country and called on the president and the governors to do something to ameliorate the sufferings of the masses.
The communique signed by Northern CAN’s Public Relations Officer, Chaplain Gilbert Jechonia and released to Journalists in Kaduna yesterday, called on Nigerians not to relent in their prayers for the unity and stability of the country regardless of the mass poverty and hunger in the land.
The Northern CAN commended the government for taking steps to cushion the effect of the removal of petrol subsidy by way of providing palliatives, but said the steps were cosmetic and may not be the lasting solution to the present economic predicament.

“There is mass poverty and hunger in the land, many Nigerians are barely struggling to make ends meet”, the communique reads.
“Many businesses have collapsed as a result of the harsh economic situation in the country. Unemployment has pushed many young people into crime.
“It is our considered opinion that the provision of such palliatives is not a lasting solution to the hardship being faced by the masses.
“The government should take more concrete and realistic measures at addressing the problem than adopting this adhoc strategy that will only end up enriching a few individuals.

“The palliatives will end up in the pockets of some few individuals and their cronies as we have seen in Nasarawa state where some government officials in charge of the distribution of food stuff were reported to have connived with some traders to divert them!”
The group commended security agencies for fighting insurgency and banditry which it noted, had contributed to the destruction of the economy.
The association however said, “It is not yet uhuru as the bandits continue to terrorise communities, especially in the North.”
The communique lamented, “Almost on a daily basis, these criminals attack communities, killing and abducting people.
“Many people cannot go to their farms for fear of being abducted or killed.”

The association called on the federal government “not to relent in empowering and supporting security agencies to crush the criminals.”
The communique urged President Tinubu and the governors of the 36 states of the federation “to live up to the expectations of Nigerians, by ensuring that the economic and social problems bedeviling the country are addressed.”
The religious body also cautioned the Economic Community of West African States (ECOWAS) against the use of force in resolving the political impasse in the Republic of Niger, following a coup.
The communique states further: “That the President and governors must run an all-inclusive government and ensure that development projects are distributed fairly to give every section of the country or state a sense of belonging.

“The meeting called on President Bola Tinubu to do everything humanly possible to address the issue of food crisis in the land.
“The free fall of the Naira to Dollar and other foreign currency is a threat that the government must address for the good of our economy.”
In his inaugural address on May 29, President Tinubu declared an end to the era of fuel subsidy, stating that the 2023 budget did not provide for fuel subsidy, making further payment unjustifiable.

SOURCE: Arise News

Nationwide NLC Strike Disrupts Businesses and Government Offices in Middle Belt States

The ongoing two-day warning strike called by the Nigeria Labour Congress (NLC) has seen widespread compliance in several Middle Belt states, including Taraba, Bauchi, and Kaduna. Businesses, government offices, and even financial institutions have been affected by the strike.

In Taraba, the State Chairman of NLC, Peter Jediel, expressed the necessity of the strike to ensure workers’ compliance. He emphasized that the N2 billion allocated by the Federal Government to the 36 states and the Federal Capital Territory was insufficient to address the nation’s economic challenges.

Bauchi also experienced the strike’s impact, with banks and government offices locked. Various institutions, including the Abubakar Umar State Secretariat and the Federal Secretariat, were affected. The State Council of NLC, chaired by Ibrahim Maikudi, expressed satisfaction with the strike’s first day and ensured that establishments adhered to the strike.

In Kaduna, the NLC Chapter Chairman, Ayuba Suleiman, stated that the nationwide strike aimed to push for wage increases. He highlighted the challenges faced by Nigerian workers, emphasizing that their salaries no longer meet their basic needs. Workers in Kaduna were locked out of their offices by the labor union, sending a clear message to the Federal Government about the workers’ plight.

Suleiman explained that the warning strike served as a message to the government, emphasizing the urgency of addressing the high cost of living and the inadequate income of workers. National NLC leaders had already given the Federal Government a 21-working-day ultimatum to address these issues, making it clear that immediate action is needed.

Subsidy removal: Cash transfer is scam – Kaduna Gov Uba Sani

Governor Uba Sani of Kaduna state, has described the proposed cash transfer policy of the Federal Government as a scam.

Sani stated this while speaking in an interview with Arise Television’s News Night on Friday.

The governor said, “My position has always been that, at this critical time, cash transfer should not be something that we should bring up, completely. I think that cash transfer for me, in my opinion, is a scam. Completely is a scam. I can be very certain about that, because who are you transferring the money to?

“Let me give an example, go and check the current statistics. Like I said, as the Chairman, Committee of  Banking for four years in Nigeria, I oversight Central Bank, I oversight all the commercial sector of our economy for the last four years and I look at the statistics, I will be very firm on this issue and you can go and check it. 

“Let me give an example, go and check the current statistics. Like I said, as the Chairman, Committee of  Banking for four years in Nigeria, I oversight Central Bank, I oversight all the commercial sector of our economy for the last four years and I look at the statistics, I will be very firm on this issue and you can go and check it. 

“About 70 to 75 percent of the rural population in North West are financially excluded completely. You will have to go and check, these people we are talking about are important people in the society. They do not even have a bank account so who are you transferring the money to?

“Let’s try and work very hard to make sure that they are financially included, that is the most important thing and I will like to call on our development partners, the World Bank, to put more money towards bringing more people into the financial services and the vulnerable in particular.

“Let’s put more money to ensure that we open accounts for them, get them involved, if we don’t do that, no matter what we do however you do it, money will go to the wrong people, that’s the fact.”

President Bola Tinubu had earlier unveiled his administration’s plan for a monthly N8,000 transfer to 12 million of the poorest households in the country for six months, in a bid to cushion the effects of the removal of fuel subsidy.

The plan was contained in a letter read last Thursday on the floor of the House of Representatives regarding the $800 million loan request of the previous Muhammadu Buhari administration for a social safety net programme.

But days after the announcement, the Federal Government said it will review the move following the public outcry it generated among Nigerians.

Recall that following the removal of the petrol subsidy and the recent hike in petrol prices to up to N617/litre, the National Executive Council (NEC)  agreed on palliative measures for Nigerians.

NEC also considered integrity tests on state social registers, cash transfers would be done via state social registers subject to state peculiarities.

The Federal Government also initiated a six-month cash award policy for public servants.

According to the Federal Government, food items grains and fertilizers are to be distributed by state governments at the rate acquired from National Emergency Management Agency (NEMA), while states were asked to double down on energy transition plans in the transport sector.

Source: Vanguard

We inherited N307 billion debt from Lalong’s administration – Mutfwang

Governor Caleb Mutfwang of Plateau State has announced that his administration inherited a debt burden of N307 billion from the immediate past administration in the state.

The governor announced this shortly after receiving the reports of the committees on the Transition and Strategic Development Framework for Plateau State on Monday in Jos.

Prof. Ganyir Lombin headed the two committees.

The governor voiced his determination to take the state to greater heights despite its huge debt profile.

Mutfwang particularly expressed his readiness to tackle the current security challenges in the state.

“Throughout the campaign season, we were under the mistaken belief that our debt burden was around N200 billion; to hear that it is N307 billion is quite intimidating and worrisome,” he said.

The governor pledged to meticulously study the document presented to him, adding that further investigation would also be conducted with appropriate action taken after that.

Earlier, Lombin explained that some operational challenges prevented the two committees, which had appointees of the past administration as members, from jointly presenting their report.

He noted that the handover notes presented to the governor on May 29 differed from the agreed template developed by the joint committee.

Source: Daily Post